FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Hawthorn East Small Business Loans
Let me know about the Hawthorn East Small Business Loans
Hawthorn East unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an ordinary business loan?
The application to get the Small Business Loan in under 10 minutes by phone. You will receive an instant response and the funds could be in your account in 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. Our company loan is a cash-based loan so you will be aware in advance of the total amount payable including any interest, fees or charges. This is then divided into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business purpose including cash flow management, business remodels and marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Hawthorn East Business Loans
What is the Larger Hawthorn East Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be utilised?
A large company loan can be used for nearly every business need, including business improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s in the form of a charge over assets, and could include registration with the PPSR or making a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than stipulating the security for a particular asset. The person signing the guarantee is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR allows priority over personal property to be assigned depending on the date that a security interest was registered.
A caveat is a legal document that is filed to provide an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250K or more we can offer an initial pre-approval to smooth out the process. We may be able to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being checks. It’s not an offer or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you may receive may have different conditions.
The application process
Are I eligible for funding?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and a dedicated company loan specialist will call you to help you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we usually provide an answer within one hour – as long as you submit your request during quality business time and permit us to utilise the bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements , we are able to offer a decision in as little as one company day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The fastest way is to ensure you apply during standard company hours. You can also allow us to use the advanced bank verification system to verify your bank information online. If you upload copies of your bank statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide an answer within an hour, provided you make your application during normal business times and allow us to use the bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can provide the decision within one business day.
For the Larger Business Loans ($100K and up) we could be able to offer you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Some transactions have received approval in 24 hours.
The quickest method can be make sure you apply during normal business hours. Also, permit us to use the advance bank verification to instantly verify your bank information online. If you choose to send us copies of your bank accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of factors that determine how much we can lend you health for your business and the level of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the specifics the company.
When you apply for a certain amount, we will consider a number of aspects to determine the health of the business as well as the amount of payments your business is able to afford. The total amount of your loan will depend on the specific circumstances of your company.
Fees & repayments
How much do you charge for an business loan?
If you decide to request the business credit, we’ll assess the risk profile that you have for your business and offer you with a customised offer, including loan amount, term and the interest rates. A company loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I pay?
Interest rates for business loans rates depend on several variables like the amount to be borrowed, what company assets the money will be used for and the sector the company is operating in, how long the company has been operating as well as what percentage of the company has enough cash flow to fund the loan, and the general health or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much you’ll need to pay and when, from day one. There’s no compounding and no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You are able to apply for a loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You can decide to repay the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please call our helpful company loan experts. They’ll provide you with the details of your repayment along with an early payout estimate. It will be calculated using the sum of the principal amount remaining and accrued interest to the time of early payment in addition to 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being transparent about the ways we gather data, process, exchange and protect your information, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner uses the assets they have to get a loan. The asset could be an individual property, such as the family home or an company asset such as a vehicle or piece of equipment.
The majority of lending institutions, even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, the asset might be taken over by the lender. In essence it is an opportunity to secure new financing taking advantage of the value of what you already have.
Should I need security for an business loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money However, we require a personal guarantee. require the personal guarantee. As long as you follow the terms of your loan (as stated in the loan contract) the security of assets is not required. For loans that exceed $150,000, generally, you can get personal ensure and security is provided in the form of a charge over assets.